The Mexican Federal Economic Competition Commission (COFECE) published the “Study on Competition in the modern channel of retail commerce of food and beverages,” which identified the need to facilitate the entry of more competitors in the market, as there is a high concentration in few self-service chains with nationwide presence, mainly in the warehouse, supermarket, hypermarket, and megamarket formats.
This is the result, partly, of local regulations that hinder the entry of new stores COFECE concluded. The fact that there is not enough competitive pressure hampers consumers from gaining access to better prices.
Furthermore, this high concentration favors the negotiating power of large retail chains over its smaller suppliers, which could cause their exit from the market and harm their capacity to innovate.
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